Mortgage rates have been rising for the last few years at an unsustainably fast pace. As they say, what goes up must come down, and vice versa. As of the December 2023 Federal Reserve meeting, there has been speculation that rates may come down by .75% by the end of 2024. Promises, promises ... don't hold your breath and faint while you are waiting for the rates to come down a little bit. Don't turn your house with a low rate into a financial prison!
If You Feel Like Your Life Has Been On Hold Too Long, Do Something About It
Freddie Mac has been tracking mortgage rates since 1971, and the median 30-year rate is 7.41%. With this perspective in mind, take an assessment of your monthly bills where you add up how much you pay toward the following...then add up the total. There is a strong chance that you can refinance all your debts into one new mortgage and end up with a lower monthly payment. What is your total on these items?:
- Mortgage Payment
- Car Payments
- Recreational Vehicle Payments
- Credit Card Payments
- Any Existing Debt Consolidation Payments
- Student Loan Payments
- Money you may be paying back that you borrowed from family/friend
You may be surprised when you arrive at the final number! AND, by consolidating all of these debts, even at today's rates that are higher than a few years ago, the resulting payment may come in lower. We have run some scenarios where our borrowers have saved up to $3,000/month! Imagine what you can do with that amount of additional cash to live on.
Here Is The Takeaway: Don't Pause Your Life While Waiting For Something Out Of Your Control To Happen
Rates will very likely come down over the next few years once inflation calms down. We have successfully refinanced many customers on a "Cash Out" refinance to consolidate debts, with a plan in place to refinance their loan down to a lower rate as many times possible while rates come back down. Those customers are happy they can breathe better from the initial cash out refi, and excited for the opportunity of the future refinances to lower payments.